He stated that manat’s rate is down by 11% since beginning of 2016: “Despite global problems, national economy shows stability against crisis. For the first time since 2008 we feel an economic recession.”

“We will continue tight monetary policy. We developed strict monetary program for 2017 and we will realize it. The purpose is to regulate inflation without any pressure on manat’s exchange rate. We will increase volume of monetary sterilization”, bank governor said.

According to him, in the mid-term it is necessary to restrict costs: “We have to administer consolidation in the mid-term. Stabilization budget should be managed without deficit. Debts and investment problems should be solved out of currency market. We will place our proposals. We have to restrict inflow of these funds into currency market. We are well aware of social and economic outcomes when national currency loses value”.

“We haven’t yet eliminated deficit in payment balance. We expect $5 bln. deficit by the year-end. 80% of this is connected to capital movements. They are mostly foreign commitments. Oil price declines. Non-oil exports also went down by 20%”, CBA chairman added.

If you find out orphographic mistake in the text, please select mistaken part of the text and press Ctrl + Enter.